4.

0 MARKET RESEARCH AND ANALYSIS

4.1 Customers

Our product is one of innovative product that can be marketable for personnel use. This
product is more focuses on certain space in the house such as balcony or near the window. Most
of the customers that will use this product are for their home decoration in the same time they
can plant the vegetables. This Home Aquaponics also has automatic fish feeder, so the users no
longer need to worry about forget to feed the fish.

The major purchasers of this product are B40 group who stay in the town. This product is
efficient to be used at this place especially people that don’t have land to plant something. For
this product, it only needs a small space to locate the product. Besides that, this product also can
be one of the home decorations. In the same time, this product also can help people to live in
healthy way by eating vegetable that they plant.

Our product is easily reached and receptive because the system used simple components
that everyone knows. This Home Aquaponics is a useful product because it is an automatic
system. The user just needs to refill the fish food when it runs out. Other than that, the system
will run automatically because the product equipped with automatic fish feeder. So the time can
be saving and the users only need to wait until the vegetables are grown. For those customers
want to get this product, they can order it through our official which is
(www.homeaquaponics.com.my). Besides that, the customers also can get our product directly
from our selected branches. We have several branches in the peninsular Malaysia which are in
Penang, Shah Alam, Kuala Lumpur and Johor Bharu. These branches are placed in the chosen
locations for ease the customers to get our product. For our main branch is located at Kuala
Lumpur. Our company also provides free installation for all customers.

4.2 Market Size and Trends

The demand market for this Home Aquaponics within 3 years will be increase. This may
because of many people nowadays like new innovations and at the same time can help to reduce
their cost of spending. In order to expand our product in market area, we do not only consider
selling the product in Malaysia only, we also want to expose this product to entire world. The
minimum price that will be spend for our product only RM250, so as we can predict about
10,000 customers will attract with our product. So the total market size for our product is about
RM 2,500,000. This product also has potential profitability because it is a new innovation
produced by us.

For our product which is Home Aquaponics, we already target the potential annual
growth in order to sell this product to customer. At the early stage of our operation, we only want
to focus on introducing this product to people that live a town which is that doesn’t have land to
plant anything. We have predicted the potential annual growth of our product for 3 years is about
RM 7,725,000.

Market size in 2019 Market size in 2020 Market size in 2021

Demand increase 3% 10,000 10,300 10,600
per year
Total cost (RM) 2,500,000 2,575,000 2,650,000

Total for 3 years: RM2,500,000 + RM2,575,000 + RM2,650,000 = RM7,725,000

Furthermore, we are targeting B40 group as our potential market who wants to install our
product in their houses. This product only being introduced inside our country, then if we get
good response from customer we want to expand it to country inside Asia. Then we can continue
to introduce it through worldwide.

Actually there are not many major factors that can affect the market growth of our product. The
opportunity that we use in order to introduce this product is capability push which is technology
driven. Technology driven means we introduce new innovation or invention to customers that
love new technology. So we can say that this product will be a success if we introduce it to the
customer.
4.3 Competition and Competitive Edges

Competitors Strengths Weaknesses

Malaysia Hydroponics  Multistage of  No automatic fish
compartment feeder
CityFarm Malaysia  Light-weight  No automatic fish
feeder
M.E.A. Aquaponics PLT  Bigger size of  No automatic fish
aquarium feeder

For early stage of our operation, we will focus on exploiting the local market as our potential
main target. Even though we are new in the industry, but we try our very best to compete with
the other companies by providing the best quality, price, performance and service warranties so
that we will be recognized and soon we will be able to expand our market. Since our company is
based in Malaysia, we can provide the best price for the Malaysia market in order to compete
with other local companies. We have our own strategy to make our product the more preferable
product than others.

Before we start our business, we have done some researches and surveys about the
technology used by our competitors. From our surveys, we found that most of our competitors
sell their product in large scale which is used in the industry and another one with small size
which is used mini aquarium. The system operation is almost same with different size. To make
some innovation to our product, we have come out with suitable size as home decoration and
install automatic fish feeder at the product. This additional system that make our product
different compare to our competitors.

All of the products have their own advantages and disadvantages based on several aspects
that will affect the decision of the customers to choose which company provide the best products
or services. The major factor that affects customers’ decision is cost. Customers will choose the
company that offers lower price but with the same quality. As for the local competitions, we do
not say that their products have disadvantages if compared to our product. But since our product
has the automatic fish feeder, we can say that our product has advantages if compared to other
local competitors.

4.4 Estimated Market Share and Sales

Based on the acceptance of our product, we can assume that the market share for our
product for 3 years will increase 5% for every year. As we can see below on the table, the total
sales increase until RM925,000 in 2021.

Market Share and Sale

Year 2019 2020 2021
Market share 15 20 25
Total Sales 1500 2000 2500
Total Sales (RM) 555,000 740,000 925,000

4.5 Marketing Strategy

A proper marketing planned strategy need to have in order to attract the customers. First
of all we must fulfill the customer needed by using the latest technology and make sure the
product that we sold is safe to use. In addition, because of this product use the latest technology,
so we target to attract customers around in Malaysia. We had selected a few capitals around
Malaysia as our new branch in order to let the product had been supplied to customer smoothly.

Main branch – Kuala Lumpur

Other branches – Penang, Shah Alam and Johor Bharu

Several strategies that we need to focus on:

1) Best product among competitors

We will make sure that this Home Aquaponics is reasonable price to the market. We also will
improve our product from time to time.
 2) Warranty of product

This product will be covered by 2 years warranty and the failure is only covered if it is because
of system and mechanical failure only, not because of customer broken it up.

3) User friendly

This product had been design to be user friendly. It’s easy to use and easy to install.

4) Advertisement

We will use our technology era by promoting our product which is Home Aquaponics through
internet and multimedia. In additions we also will advertise it on banner and sign board.

5) Free gift

To let the customer happy to buy our product we will also provide free give to customer.
Examples of our free give are free installation and fish food. The other free give will be added
from time to time.

6) Distribution

For easy to get this product, we had built our branch in several state in Malaysia. The customers
can easily get the product there.